Why did AAPL tank on Tuesday and where the hell is the SEC?

Hammacher Homepage 300x250“Apple fell 2.6% on Dec. 1 in an ugly close that left investors deeply suspicious,” Philip Elmer-DeWitt reports for Fortune.

“More than 3.5 million shares changed hands in a fury of last-minute trading, and when the dust cleared, Apple had fallen 5.27 points (2.6%) for the day to close at $196.97. Nearly 3 of those points were lost in the final 12 minutes, when $2.66 billion of the company’s market capitalization evaporated in less time than it takes to drink a latte,” Elmer-DeWitt reports

“What happened? That’s for the SEC to determine, assuming they care. But investors were deeply suspicious. In a day when the Dow climbed more than 126 points, there was no news bad enough to trigger a raid on Apple, no downgrades or negative analyst reports,” Elmer-DeWitt reports.

“There was, however, some interesting back-channel chatter on the finance boards and among hedge fund managers. including rumors that Steve Jobs needs another organ and that Apple’s Cyber Monday sales were terrible. (In fact, traffic at its online store was up 39% year over year on Black Friday and 71% on Cyber Monday),” Elmer-DeWitt reports.

Full article here.

MacDailyNews Take: Bring back the Uptick Rule.

[Thanks to MacDailyNews Reader “JES42” for the heads up.]

42 Comments

  1. More Wall $treet hedge fund FUD BS. That’s why I avoid immersing myself in the day-to-day crap. I am sure this is yet another round of lies to short Apple stock and then make money on the rebound. It’s why I am long-term, and avoid heart palpitations over crap like this.

    When will the SEC grow a pair and really go after the vermin running hedge funds? Public executions by firing squads or chainsaw could be shown on pay TV. Think of the ratings!

  2. Investigate hedgefunds, close them down, take away all their illegal profits, put the dishonest in jail for life. Stop the abuse and stealing of money from the middle class.

  3. Okay here’s the bet.

    1. The SEC launches an investigation
    2. They investigate why Steve Jobs didn’t tell us he needed another organ.
    3. This is somehow traced back to Tiger Woods.

    Any takers? No?

  4. Doesn’t really matter for the REAL “investors” who buy and sell on the long term. I sold some of my share a few weeks ago, when AAPL crossed $205. If it drops below around $175, I might buy some back. These short-term fluctuations are irrelevant in the long term.

    What is more relevant is the health of the overall market, which can bring down AAPL as it did last year, and the continuing weakness of the dollar, which makes dollar-based investments less valuable.

  5. ?

    According to my friendly little Widget EVERY stock I track lost ground yesterday, and they’re losing again today.

    Colour me confused as to how this is an “Apple Story”, ‘cos I could write the same headline for 5 other companies with the press of a button.

    BTW, we all know it’s simply fallout from last nights Obamaspeak, don’t we ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  6. That mdn gets so fired about meaningless short term stock movements. And for those who say to close all hedge funds you are simply stupid. Don’t blame hedge funds every time you don’t like the way a stock moves. Actually, in reality, hedge funds are important even if they short as they do provide market liquidity. And mdn, it is almost functionally impossible to bring back an uptick rule when stocks are traded on so many different platforms. It’s not logistically possible given the speed of current markets. Mdn, stick to reporting on apple and bashing everyone else. Stop talking about things you nothing of. You just seem like a little screaming child.

  7. How the Stock Short game works (Simple Version):

    Borrow a Million Shares and sell them at $205.00
    (Or Naked Short buy selling a Million Shares you don’t have, after all you have T+3 days to find them some place)
    Then start a negative rumor and by feeding it to a stock blogger or news reporter that owes you one. (this is the only illegal part it’s called, fomenting)
    Sit back and Wait for the price to drop to $195.00
    Buy back the borrowed Million shares.
    the $10.00 stock price spread would amount to a positive cash gain of $10,000,000.00 minus the fee paid to the owner of the stock you borrowed (Normally 1% to 5%).
    And if you’re a hedge fund that can naked short the transaction and float the T+3 to the T+10 day max before SEC action is filed it can cost you nothing.

  8. Apple has done very, VERY well this year. But the market is topping off at this point. Check some of the year’s other big winners, like Goldman Sachs, before you start spreading these absurd conspiracy theories. You’ll find that investors are starting to take profits in many of the companies that have done exceptionally well since March. (The financials, especially, have pretty much leveled off.)

    Get some perspective on the market before you write this tripe. Stop listening to clueless rumors. And if you own Apple, well, take a cue from what the market is trying to tell you. ‘Tis the season, you know, to be something other than greedy.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.